Coca-Cola halts production in Venezuela over sugar shortage

Mexican beverage multinational Coca-Cola FEMSA is suspending production in Venezuela because of a shortage of sugar, according to a company statement.

“Ninety percent of the production requires sugar. We are not going to shut our central office right now. We are not leaving Venezuela,” said FEMSA in a statement on Thursday as quoted by the La Patilla daily.

According to reports in Venezuela, Coca-Cola FEMSA is suspending its local production due to a long term shortage in sugar supply

In January, Maduro declared an economic emergency in the country. The step came two days after Venezuela’s oil price dropped to $24 a barrel, the lowest mark in 12 years. The measure has been extended to a full-blown state of emergency this month.

Venezuela’s oil-dependent economy contracted by 10 percent last year, inflation reached 141 percent between September 2015 and the year-end, according to government statistics. The International Monetary Fund (IMF) has predicted further recession.